Hmmmmm, I can hear the sign of relief, as you are glad you finally made it to the end of the year. 2020 is a year that many people, including you, will never forget for a very long time, as it is the year that more or less challenged and changed everything in the world.
It was the year where the corona virus pandemic caused every village, state or country to go on emergency lock-down, which lasted for months in many places, leading to loss of jobs, income, and more bitterly caused economic down-turns and deaths.
But adversity they say does best discover virtue, as the lock-down eventually became an avenue for many home businesses to be created. The pandemic may be almost seemingly over, but one thing we can never take away, is that home business has become the order of the new post-pandemic era.
There may be no likelihood of all the world going back on lock down again at the same time, but the only thing that will remain with us is that the way we work, commute and relate with others, will never be the same again. This implies that home businesses will become the new gig economy and a major income earner for many people all over the world.
So in this guide we will be providing detailed step by step information on how you can start and profit by starting a home business in 2021 and beyond. There is no doubt that some of the jobs lost in 2020 may never be recovered again. But the question is, are you willing to go through another year without a job? How long will you survive without an income because the lock-down affected you? Have you considered starting a home business? Or is it that you wanted to start a home business, but don’t know how to go about it? Is that is your situation, there is nothing to worry about, as you are in the right place now.
We will be educating and equipping you with well detailed and researched information on how to start a home business, the types of home business you can start and also how you can quickly and easily profit from your home business.
There is not enough time to waste, as we will be going straight into the business at hand. A very key and important step towards starting a home business, is to firstly know the different types of home businesses you can start, as the one you decide to start, will be dependent on your skills level, experience, available funds to you, tools you have, the country were you will be operating from, competition, etc.
Below are the list of home businesses you can start with little or no money:
- House cleaning
- Freelance writing
- Personal training
- Virtual assistance/ online services
- Dog walking
– Sell homemade products
– Start a drop-shipping store
– Start a print-on-demand business
– Teach online classes
– Buy an existing eCommerce business
– Start a subscription box business
– Sell unwanted items
– Playing/renting video games
– Travel planner
The list however is non-exhaustive, but I guess by now you have the idea of different home business ideas you can start with. So now that we have given you the list of business ideas, the question now will become, so how can I get started with home business?
- Choose your small business idea.
We are not sure if you already have your business idea you have been nursing or you just choose one from the list above, but it is very important for you to have the requisite skills/talent, training, experience and resources to get started. For example, how can you start a professional freelance service of writing, if you don’t know how to write or have not been trained on how to do it professionally? Or if you are starting out as a virtual assistant, and you don’t have the necessary tools and equipment?
A good step then is to take out some time to learn, while also ensuring that you have the experience, resources, mental strength and passion that will carry you through the different stages of starting and profiting from the home business that is of interest to you.
- Will your home Business be a side hustle or full time Business?
Your new choose business, will it be pursued as a side hustle or full time business? The answer to this question is very key, as this will determine the length you are willing to go and the pains you are eager to bear, in order to make your business successful or otherwise.
Will it be a business you may decide to work on only on evenings or weekends for instance? If you don’t have the proper experience or trainings, will you be willing to learn? If you don’t have the skills or experience, it will however be advised you start it as a side hustle, so you can use the period to test the market, make all your mistakes, learn, then start the business full-time and scale up.
There is a wise saying that “you earn more when you learn more”, so will your home business help you to learn more or earn more?
- Register your Business/Get necessary Licenses/Permits/Insurance.
It depends on the country or state where you will be operating from. It will be a bad idea to have your new home business run afoul of the law. So you should get in touch with the company house in your country or state and get your new business registered.
You may need the advice of a lawyer in determining, if the best structure for your business will be a sole proprietor or limited liability company, as each of them have their pros and cons.
After registering your company, do not forget to get all necessary permits and licenses. The licenses and permits needed, will be dependent on the type of your home business idea and the country you are operating from.
It will be embarrassing for instance, for government officials to come to your home and seal up your business, simply because you failed to remit taxes, or you did you have the required permits or licenses to operate the particular business. You can reach out to the chamber of commerce to find out everything you need to start the type of business.
You may also have to get an insurance cover for your new home business. You can reach out to an insurance broker to know the type of insurance cover that your business will require.
- Write a business plan.
It does not matter if you want to run your home business as a side hustle or a full time business, it is very important that you write a business plan. You never can tell, the little idea you are toying it, may turn out to become a very huge and successful business in the future, so why not take the right step from start and watch things pan out.
Generally speaking, your business plan, should have the following elements:
– Executive summary: An overview of company and market.
– Business model: You should be able to highlight your business structure, your customers, description of production/services you offer, how your products/services will meet the needs of customers, etc.
– Market condition: An overview of your competition. Analysing their strengths and weaknesses.
– Products and services: Outline what differentiates your products/services from others. i.e. your unique selling proposition (USP)
– Operations and management: Highlight key roles and responsibilities and the ownership structure of your business.
– Marketing and sales strategy: You should be able to describe how you will market or sell your product/services and also highlight your market penetration and sales strategy.
– Financial plan: This is probably the most important part of your business plan, as you should be able to highlight your start-up cost, how you will source for funds and how you intend to generate funds in your new home business.
It is very imperative to understand that a business plan is not a static document, as it changes with time, so you must be willing to adapt your plan to align with changes in your chosen home business sector.
If you are having difficulties writing a business plan, there are many free business plan templates you can get online for free, but if you want something more professional, you can reach out to these guys, https://www.biab.com.ng they will be willing to help.
- Get the tools for your Trade.
No farmer goes to the farm without the necessary implements and tools. In like manner, it is very important that you get the right tools for your chosen home business idea. There may be exceptions, if your home business idea is dog walking for instance, which may not require any tools, nonetheless, you will still need to have some experience handling dogs. So the place of the tools for your trade cannot be overemphasized.
So depending on your home business idea, there is the need to have a software or tool to help you with book-keeping, email marketing, analytics and project management etc.,. You may also need a computer, microphone or customer relationship management software, if virtual assistant is your chosen home business idea for instance.
- Create a business bank account.
After you must have officially registered your business and have applied and gotten your Employer Identification Number (EIN), it is now time to open a bank account for your business.
The reason why you should open a business bank account is that it will help you separate your business finances from your personal finances.
The temptation most times is very strong to leave everything as same, but since you have decided to start a home business, you should also be willing to run your business professionally.
The huge advantage you will have by separating your business account from your personal account, is that you would not have to sweet from your ears when the tax man comes knocking, if you failed to remit your taxes for instance.
Many banks other there offer business savings and checking accounts. However, you may have to seek advice from your banker to know the benefits of each type of account, and the account type you may be eligible for, more so, the type you may be eligible for will be as a result of the structure of your company.
So make sure you are adequately informed before taking your decisions, as an informed decision is always better than an emotional decision.
- Build a team for your new business
Your home business may be such that requires only you to run, but if otherwise, you will have to build a team. Building a team will entail getting round pegs to fit in round holes. So you may start with a small team, but as the business grows, you will begin to add more people to the team.
So you will have to learn early how to effectively recruit and manage teams, as this will help you develop a good company culture.
Best recruitment and employee management tips
- Don’t hire anyone until you absolutely need to.
- Hire only the best and most brilliant candidates
- Offer a competitive remuneration package
- Use their company’s vision to inspire a candidate to want to be part of the business.
- Show career progression possibilities for the candidate.
- Demonstrate a progressive, diverse and exciting work culture to the candidate.
- Have a management ethos and system in place
- Have management structures
- Have or create a positive work environment
- Souring for funds for your new business
You may have already got some savings before deciding to start your home business, hence there may not be need for you to source for funds. However, depending on the type and scale of the home business you have decided to start, the followings are ways you can access funds for your new business.
- Your savings
- Friends & family
- Business grants
- Business competitions
- Angel investors
- Venture capital
- Business Loans
- Business credit cards
- Business overdrafts
- Equipment loans
Check out this post on how to getting funding for your start up
- Marketing your home business
No matter how beautiful your business idea is or how experienced you are as a business person, your new home business will not find any success, until you are willing and ready to market it. As marketing, they say is the heartbeat and soul of every business.
Marketing therefore should go beyond the traditional method, but rather should be innovative and creative, as the times we live in requires a lot of creativity and innovation. It is then proper to have a well mapped out sales plan, marketing system and channel for your new home business.
As part of your innovative marketing plan, you should have proper packaging for your products/services, pricing, positioning and offerings. A better understanding of your unique selling point (USP) will help you in repositioning your offers.
The following tips will serve as a guide
- Set your price at the right level
- Work out your costs per unit.
- Work out the profit margin you will be making per unit/per hour.
- Gather pricing information on your competitors’ products or services.
- Find out what the customer is willing to pay.
- Choosing a route to market
- Sell your products/services online
- Sell your products/services via a retail shop
- Sell your products/services wholesale if applicable
- Sell through an agent or affiliate
- Make use of Email marketing
- Use Online advertising extensively to get new customers
- Use Social media marketing
- Use Content marketing by running a blog
- Create brochures and posters
- Build a website
We know you are all geared up and willing to hit the ground running as we believe we have provided massive value in this guide. But the question is, are you willing to take the right steps? Are you prepared to give your new home business all it will take to make it successful? The ball right now is in your court, kick it and score a business goal.
What are your thoughts with regards to this practical guide and do you have any business idea you want us to write about? Let us know in the comment section.